Sources: CRH Plc, Dublin; CP staff
In nearly 40 years of North American market development, CRH has announced the boldest move yet for its Oldcastle Inc. enterprise: a $3.5 billion acquisition of Ash Grove Cement Co., Overland Park, Kan. Projected to close later this year, the deal brings integrated or stand-alone sites from the Great Plains to the Pacific Northwest: eight cement, 52 ready mixed concrete and nine packaged dry mix plants, along with 20 limestone quarries and 23 sand & gravel operations.
“CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for decades,” says Ash Grove Chairman Charlie Sunderland. “The Board of Directors believes that CRH will be able to bring Ash Grove on the next phase of its development after 135 years in operation and over a century under the stewardship of the Sunderland family.”
“Ash Grove is an excellent addition to CRH’s portfolio of businesses across North America as we seek to deploy our capital into high-quality businesses that enhance our global asset base and provide opportunities to create shareholder value,” adds CRH Chief Executive Albert Manifold.
The Ash Grove properties reported a 2016 pre-tax profit of $215 million on sales of $2.5 billion. They provide CRH a stake in the U.S. portland cement market akin to the leading positions Oldcastle Materials, Architectural and Products hold in aggregates, ready mixed, concrete masonry and precast concrete.
Oldcastle-style capital reallocation
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